Australia's Centuria Office REIT portfolio valuations dip 5.6% (updated)

Centuria Office REIT

11/01/2024 23:50

(Rewrites throughout with further details in paragraphs 2-4)
       Jan 12 (Reuters) - Australia's Centuria Office REIT
 COF.AX  said on Friday the book value of its portfolio as at
the end of first half of fiscal 2024 fell 5.6% amid a slowdown
in the country's office and retail real estate market.
    The commercial real estate sector in Australia, particularly
office and retail, is reeling under headwinds including a
shortfall in demand owing to hybrid working arrangements, rising
interest rates lowering portfolio valuations for companies
alike, and a slowing economy.  
    External valuations on 12 of Centuria Office's 22 investment
properties as at end of December reflected a like-for-like
decrease of about A$124 million ($83.01 million) on prior book
values, a portfolio decline of about 5.6%, the company said. 
    This drop follows a 4.4% fall in portfolio valuation posted
by the Sydney-based office real estate investment trust as of
June, indicating continued pressure to write down portfolio amid
property sector woes.
    Centuria's weighted average capitalization rate - a metric
to measure return on investment of real estate assets - across
its portfolio rose to 6.26% from 6.00%, as at Dec. 31.
        
    
($1 = 1.4939 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by
Shweta Agarwal and Rashmi Aich)
 ((Aaditya.GovindRao@thomsonreuters.com;))